Money Management in Kids and its Importance

Since time and money are the two most important assets of our daily lives, there lies a dying need to plan their exhaustion in a proper way. Management, as we all know, is a set of strategies which helps us to use any particular commodity judiciously and also to conserve it for the future requirements. Together with money, the term “money management” is calibrated as the spending of money rationally. Money management is needed at each and every phrase of life. This article all about the money management is kids and children in order to prevent them being a spendthrift and rather to make them a rational human being in future. The following are some reasons why money management is important for kids:

Why teach money management to kids?

1. Finite resource: Since “money doesn’t grow on trees”, children at their tender age should learn the fact that money is not an infinitely available commodity. The lust for buying the latest fancies will be there at that age but they should be cropped out at some time. Moreover at the teenage, they often come a cross individuals who tempt them to spend excess on baseless commodities which may eventually harm their lives.

2. Reduction in wastage: The lesser they buy different gadgets for a particular purpose, the lesser will be the wastage. As children are fond of buying various toys, their motive remains to buy as many as they can. However, these toys are actually wasted since they have got mood swings, where “new” is the new “better”. Money management deals with the reduction in wastage by allowing them to buy less in the present and save for the future.

3. Value of money: The day kids understood that money is not just a piece of paper, they will focus more on managing it instead to throwing it over the commodities. They should know the fact that it takes effort to earn a penny. Also money management makes them well aware of ‘which’ deserves ‘how much’. This helps to differentiate between the luxuries and necessities of their lives.

4. Manners and responsibilities: The money management also incorporates the sense of Manners and responsibilities among the children by making them spend and save responsibly. “Each penny saved is each penny earned” absolutely defines it. They should know their responsibilities and where to focus more for spending the right amount of money through negotiations and requests.

5. Budget: They get to know about the basics of budgeting and how it is an important criterion in an organisation. Also, they will know about the absence of excess in life and they will to learn to live with their minimum expectations. As a matter of fact, they will know the definition of “life” and how to lead it efficiently and effectively.